The owner has the right to redeem for at least 6 months and 2 years if their homestead at least here in Texas and other as well. This will limit the marketability of the property as you can not give the new buyer clear title. Also you will have a hard time finding a title company that will insure the title because the owners could possibly file a claim against them.
The good news is if they do redeem the property they have to pay you 25% interest for your trouble. If you pay $10,000 for a deal and they redeem you will get $12,500 day one or day 365 and another 25% on day 366 or longer until the end of the second year (Texas).
Be prepared to pay cash without a loan or title policy if you buy from a tax sale.
Can properties be found that are not Homesteaded?
And is so is there a wait time on these as well?
Also can you live in these houses while you are waiting the 2 years 6 months?
Yes there are non homestead sales properties sold every month. The redemption time in Texas is 6 months for these. Yes you can live in them. The owner does not have to pay you back for repairs if they redeem the property except under extreme circumstances like roof leaking and doing more damage to the interior and possibly other emergency fixes.
You have all the legal rights of ownership except the redemption rights that the owner has. If you can find them you may be able to get the deed from them and then you will not have to worry about the redemption rights and it would be easier to get title insurance.